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STR reports boost for European hotel performance in 2016

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STR reports boost for European hotel performance in 2016

Hotels in Europe recorded improved year-over-year performance in 2016, with Spain and Poland standing out as alternative destinations, according to data from STR.

When reported in euro constant currency, occupancy in Europe in 2016 rose by 0.6% to 70.4%, while the average daily rate increased 1.5% to €111.77 and revenue per available room was up 2.1% at €78.64.

Security concerns deterred tourists in markets like France and Belgium, as well as in the Middle East and Northern Africa, but Spain and Poland benefited as alternative destinations, according to the analysts.

More than 70 million international tourists visited Spain in 2016, pushing occupancy up 3.5% to 74.0%, the highest level for the country since 1999. ADR grew 7.8% to €108.11, while RevPAR jumped 11.6% to €80.01.

Poland, which hosted several major events throughout the year, including the July 2016 NATO Summit in Warsaw, saw occupancy rise 3.7% to 71.3%, with ADR climbing 7.7% to 272.60 Polish zlotys and RevPAR up 11.6% at 194.34 Polish zlotys.

In the U.K., occupancy dipped 0.2% year over year to 77.2%, largely due to a 2.0% increase in supply, while in London, occupancy grew 6.9% in December 2016 as the weaker pound attracted visitors from North America and Europe. ADR in the U.K. was up 1.6% in 2016 at £89.21, while RevPAR was up 1.4% at £68.88.

The devaluation of the pound means "staycations" will play a major role for hotel performance across the U.K. in 2017, according to STR and forecast partner, Tourism Economics.

As of Jan. 23, US$1 was equivalent to 4.07 Polish zlotys.